Ocean Freight Market
Market Overview: Freight rates continue to follow demand with increases announced and rate indices predicting further elevation. Despite an increase of COVID-19 in 19 Chinese provinces and ongoing power-rationing dampening output, Northeast & Southeast Asia exports remain strong. Blank sailings edge up in November as congestion dislocates hundreds of ships pushing further into carrier inflated capacity demand.
General Rate Increases (GRI): December 1 GRI partial implementation. A mid-month GRI is expected. Carriers have also implemented Emergency Peak Season Surcharges with premium rates becoming a must as a result of strong demand.
COVID-19 Updates: China - 19 provinces in China report increased virus cases, but with limited impact to production and exports. However, power-rationing but Northeast & Southeast Asia begins to cause concern for coming months. Vietnam - Reopening continues to gain steam as capacity hovers in the 40-60% range and container equipment availability in North Vietnam is strained. India - Delhi continues to implement partial lockdown protocols.
Blank sailings: Operational blank sailings will be one of the key contributing factors in the market over Q4 – Current notices from the carriers can be found on our website (Week 48)
Holiday Notices:
• Malaysia: Offices closed Dec 11. Normal hours to resume Dec 12. Offices closed Dec 25. Normal hours to resume Dec 26.
• Cambodia: Offices closed Nov 18 through 21. Normal hours to resume Nov 22.
• India: Offices closed Nov 14. Normal hours to resume Nov 15. Offices closed Nov 19. Normal hours to resume Nov 20. Offices closed Dec 25. Normal hours to resume Dec 26.
• Philippines: Offices closed Nov 30. Normal hours to resume Dec 1. Offices closed Dec 8. Normal hours to resume Dec 9. Offices closed Dec 24 & 25. Normal hours to resume Dec 26. Offices closed Dec 30 & 31. Normal hours to resume Jan 1.
• Hong Kong: Offices closed Dec 25 through 27. Normal hours to resume Dec 28.
• Indonesia: Offices closed Dec 25. Normal hours to resume Dec 26.
• Thailand: Offices closed Dec 6. Normal hours to resume Dec 7. Offices closed Dec 10. Normal hours to resume Dec 11. Offices closed Dec 31. Normal hours to resume Jan 01.
Airfreight Market
Market Overview: Many airlines indicate rate increases due to vigorous growth in October. Rates have reached a new high on week 48 due to a robust cargo market, sustained global demand, and capacity shortages. The market is expected to continue strong well into the new year.
The U.S. Market
Market Overview: USWC port bottlenecks remain the key issue for shippers as 50-100 vessels idle for berth space in LA/LB at any given time. The “Container Excess Dwell Fee” continues to cause frustrations across all markets as more ports indicate the intention to introduce similar fees. Seattle SSA Terminal announced a “Temporary Storage Charge” to be effective December 1st with a similar fee schedule. Currently, congestion-type charges are being announced by carriers, trucking companies, and ports with increasing volume. However, CMA has announced a “Early Container Pickup Incentive Program” for LA/LB that will offer credits for importers that manage to pick up their containers during the first 8 calendar days from vessel discharge. Key U.S. Airfreight hubs continue to see ground handlers clear extreme floods of inbound cargo. Many airports have begun using off-airport facilities to manage the backlogs, with congestion starting to trickle-down on export freight. LAX/JFK/ORD CFS and warehouses are shortening their free time for storage as well as implementing earlier close-outs for exports to accommodate longer throughput times and screening requirements.
Equipment shortages are still a persistent issue, along with extreme lead times and rates at a premium across all U.S. ports/ramps. Volumes push record highs forcing truckers to charge 2-3 times the rate for pick-up requests not meeting minimum lead time requirements.
Janel Group continues to closely monitor the market and port situation. Updates will be provided as they come available. To secure a booking or explore additional options for your supplier, please reach out to your Janel Group Representative.
Gabriel Racicot
Pricing & Commercial Support Manager